Socio-Economic Analysis For A Client To Successfully Position A Pharmaceutical Manufacturing Plant

The Situation
  • Our Client, a diversified conglomerate planning to establish a pharmaceutical manufacturing plant in Sri Lanka as a Public Private Partnership (PPP), was aiming to position the investment under the Strategic Development Projects Act.

The Assignment
  • We were engaged to assess and quantify the socio-economic impact and benefits of establishing a local pharmaceutical manufacturing plant. Our findings would be instrumental in supporting (or disproving) the hypothesis that the overall benefits of the operation were higher than the minimum threshold of investment required by the Board of Investment (BOI).

  • Stax used in-depth primary research reaching out to key individuals in the pharmaceutical value chain in Sri Lanka to gain insights on the current need for local manufacturing. Primary efforts were supported by comprehensive secondary analysis looking at the local context and similar global scenarios.

  • Using our fact base, Stax developed a socio-economic model that quantified the overall benefit of a manufacturing facility to the Sri Lankan economy. Additionally, Stax evaluated the various PPP models available to assist the Client in deciding the most suitable approach to take for their objective.

The Benefits
  • The Client successfully presented our findings to the BOI along with the project proposal and secured land required for the manufacturing plant.

The Finding
  • Stax identified that the overall socio- economic benefit of having a local pharmaceutical manufacturing plant was significantly higher than the minimum threshold of investment needed under the Strategic Development Projects Act.